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RI among Asia-Pacific's top expansion destinations

Indonesia remains attractive to expansion-minded multi-national firms despite global fallout from the U.S.' sub-prime crisis, a survey reveals.

According to a report by global real estate management firm Jones Lang LaSalle, of 15 nations surveyed in the Asia-Pacific region, Indonesia ranks sixth in a list of top destinations for business expansions -- ahead of Malaysia, Australia, Cambodia, Japan, Korea, Thailand and Hong Kong.

China topped the list, followed by India, Vietnam, the Philippines and Singapore.

Eighty-three percent of the multi-nationals said they would increase or maintain their current growth rates in the region, while 28 percent accelerated the growth of their operations in the region in this year's second quarter, the report shows.

The survey company's CEO for regional business lines and corporate solutions John Forrest said emerging markets in Asia were the world's bright spots for growth at the moment.

Asian countries were less affected by the sub-prime turmoil, with the property sector remaining bright, he said.

"We're still seeing strong demand for space. However, an uncertain economic environment is forcing corporations to find smarter ways to manage their growth," Forrest said.

Demands for commercial office spaces in Jakarta's commercial business district continued to grow, with the occupancy rate in the first quarter of this year rising 24 percent, the report shows.

The growth was due mostly to tenant expansions, the company said.

New office buildings in Sudirman and Kuningan in South Jakarta accounted for the bulk of leasing activity, mainly involving banking, oil-and-gas and services companies.

Jones Lang LaSalle surveyed 30 senior corporate real-estate executives from leading multi-nationals in Asia-Pacific in the second quarter of this year.

The survey covered three sectors -- financial services, technology and consumer goods.

Among the three, the financial services sector was predicted to be the most aggressive this year based on data showing that 44 percent of the companies added growth plans in the first quarter of this year, and 33 percent predicted higher growth by the end of this year.

The consumer goods sector, on the other hand, showed mixed responses, with one third of the companies saying they would expand their growth plans, another third saying they would downsize their businesses and the rest expecting to maintain their current expansion rates.

Companies in this sector will likely look to initiate operations in the region to take advantage of promising new markets or shift current operations within it to search for lower-cost destinations.

Taiwanese investor in fresh-water fish processing in west Sumatera

Agam, West Sumatra (ANTARA News) - A Taiwanse investor is interested in constructing a fresh-water fish processing factory in Agam District, West Sumatra, a local fisheries official said.

"The Taiwanese businessman has sent a technical expert to survey the locations in Tanjung Raya and Lubuk Basung sub districts where the planned processing factory and fish food plant may be set up," the head of the West Sumatra provincial fisheries and marine resources office, Yosmeri, said here on Thursday.

An initial study had shown that Agam District was an appropriate place because its fresh-water fish production was quite high, he said.

West Sumatra was producing around 100 tons of fresh-water fish daily 70 percent of which was contributed by breeders in Agam District.

Agam fresh-water-fish farmers were pleased to hear about the Taiwanese investor`s plan to construct a fish processing factory and fish food plant in the district, saying they were optimistic the projects would help increase their income and improve their welfare.

"We welcome the presence of the foreign investor who wants to construct a fish processing plant. We will help him find a strategic location, one that is near water sources," St Mudo, a local fish breeder, said. (*)

PT DI aims to win Korean tender for 8 maritime patrol aircraft

State-owned aircraft maker PT Dirgantara Indonesia aims to win a South Korean tender to build eight maritime patrol aircraft (MPA) through a swap deal, an executive says.

"South Korea's representative told us they might have us make MPAs for them if we buy their spare parts for our planes," Dirgantara president Budi Santoso said Friday.

Budi did not reveal the type of MPAs to be included in the tender, but said he was confident they would be able to deliver on the order, citing Dirgantara's experience in manufacturing aircraft.

Dirgantara currently produces an MPA called the Super Puma, which is based on the NAS-332 helicopter, which has a 20-seat capacity, 150 knots maximum speed, 1,017 pound/hour fuel consumption and a gross weight of 18,960 pounds.

Budi said the US$18 million (Rp 167 billion) NAS-332 could be sold for $30 million once it had been modified into a Super Puma, or $45 million if equipped with anti-submarine weapons.

The Super Puma has been in production since 1976. As of 2005, the company had delivered 18 Super Pumas.

Budi said that Dirgantara, which also supplies military aircraft to the Indonesian Air Force, planned to discuss the tender with the Defense Ministry, especially in reference to the swap deal, which is an included condition.

The tender was originally to be held by the end of May this year, but has been delayed.

"It (the delay) could take a while, the focus is to approach the defense ministry to discuss in particular the swap deal," Budi said, adding that Dirgantara would in the meantime continue to make necessary preparations with the South Korea representative.

Dirgantara was founded in 1976 and provides aircraft design, development and assembly for commercial and military planes and spare parts.

In addition to the Super Puma, Dirgantara unveiled last January an MPA version of the CN-235, a transport aircraft priced at $30 million per unit. Next Tuesday, Dirgantara will deliver the modified aircraft to the Indonesian Air Force at Halim Perdana Kusuma Airport in East Jakarta.

The plane is equipped with a nighttime infrared guidance system, and can track ships within a 100-mile radius.

The company has sold 27 modified CN-235 units world wide at a cost of $14 million each, including to the U.S. Coast Guard, Malaysia, the United Arab Emirates and Pakistan.

Dirgantara plans to complete 15 sets of Airbus A380 wing components and parts this year, with 25 more sets to follow within the next three years.

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